Pakistan Replaces Dollar With Yuan for Bilateral Trade With China

FILE PHOTO: U.S. Dollar and China Yuan notes are seen in this picture illustration June 2, 2017. REUTERS/Thomas White/Illustration/File Photo

According to News 18

New Delhi: The central bank of Pakistan on Tuesday gave its green signal to using the Chinese currency, Yuan, for bilateral trade with China. The decision to cozy up to Beijing comes just a day after US President Donald Trump vowed to stop all aid to Islamabad.

Adoption of the Yuan would mean that Pakistan and China would be able to replace the US dollar for transactions in China Pakistan Economic Corridor (CPEC) projects.

Pakistan would now be able to pay for imports from China in Yuan and Chinese firms investing in CPEC projects in Pakistan would bring in funds and remit back their profits also in Yuan.

In a press release, the State Bank of Pakistan stated that “Chinese Yuan (CNY) is an approved foreign currency for denominating foreign currency transactions in Pakistan.”

Discuss.